Which Bank is Best in Share Market Nepal 2023?

Which bank is best for share market in Nepal in 2023?

Choosing the best bank can have a big impact on returns, dependability, and convenience while investing in the Nepalese stock market. As such, investors often wonder which bank is best for share market investments in Nepal.

As more and more Nepalese investors look to get involved, the Nepal Stock Exchange (NEPSE), also known as the nation's stock market, has experienced a steady expansion in recent years.

In order to assist investors in making wise selections, it is vital to select a bank that can offer trustworthy and accurate research and advising services. Additionally, investors who wish to effortlessly monitor and manage their investments might benefit from a bank that provides a user-friendly and effective trading platform.

The charges and fees levied by the bank can also have a big effect on how profitable an investment is. Therefore, it is essential to choose a bank with reasonable costs and competitive rates while choosing the best bank.

For successful share market investing in Nepal, picking the correct bank is essential. When choosing a bank for share market investments in Nepal, it's important to take into account the bank's reputation, level of research and advisory services, trading platform and technology, costs and commissions, accessibility and convenience, and fees and commissions.

Importance of Selecting the Best Bank for Share Market Investments in Nepal

Making the appropriate bank choice is essential for profitable share market investments in Nepal. Your investment returns, reliability, and convenience may all be impacted by the bank you choose. A competent bank can offer trustworthy research and consulting services that can aid investors in making knowledgeable decisions. This is particularly crucial for the Nepalese stock market, which is underdeveloped and less liquid than other markets in the area and is relatively tiny in comparison.

A reputable bank should offer a user-friendly and effective trading platform in addition to research and consulting services. In a volatile market, this makes it easy for investors to manage and keep an eye on their money.

For investors who wish to manage their investments on the go, a bank that offers quick and accessible services, such as mobile or internet banking, can be advantageous.

The commissions and fees charged by the bank can also have a significant impact on how profitable an investment is.

Therefore, it is essential to choose a bank with reasonable costs and competitive rates. Investors may also gain access to IPOs, secondary market offers, and other investment opportunities through the right bank that may not be available elsewhere.

In conclusion, choosing the appropriate bank for Nepal's stock market investing is crucial for accomplishing investment objectives. When choosing a bank for share market investing in Nepal, investors should take into account the bank's reputation, level of research and advisory services, trading platform and technology, fees and commissions, accessibility and convenience, and other criteria as well.

A Brief Overview of the Nepalese Share Market and its Growth Potential

A rising market, the Nepal Stock Exchange (NEPSE), also known as the market for Nepalese shares, offers investors opportunities for long-term capital growth. With more than 260 listed firms and a market value of over NPR 3.3 trillion, the NEPSE was founded in 1993.

The government's emphasis on infrastructure improvement and legislative changes designed to improve the business climate have led to significant recent growth in the Nepalese economy.

Foreign direct investment has increased as a result, and economic growth is seen in the rise of the Nepalese stock market. The market capitalization of the NEPSE has grown significantly over the previous ten years.

Despite the expansion, the Nepal stock market remains small in comparison to other ones in the region, less developed, and less liquid. However, the Nepalese government has implemented policies to encourage investment and improve market liquidity, including cutting transaction costs and removing restrictions on foreign investment.

Overall, the Nepalese stock market has a lot of room to grow as it continues to improve its business environment and attract foreign investments.

With the selection of the best bank and investment strategy, investors can take advantage of the opportunities provided by the Nepalese share market and achieve their long-term investment goals.

Factors to Consider While Choosing the Best Bank for Share Market Investments in Nepal

Choosing the appropriate bank is essential for reaching your objectives when it comes to investing in the Nepalese stock market. When choosing a bank for share market investments in Nepal, it's important to take into account the bank's reputation, level of services and technology use, costs and commissions, accessibility and convenience, and fees and commissions.

Investors who wish to effortlessly monitor and manage their investments might benefit from a bank that provides a user-friendly and effective trading platform. The charges and fees levied by the bank can also have a big effect on how profitable an investment is.

Selecting the appropriate bank for Nepal's stock market investments is essential for accomplishing investment objectives. The following General Factors should be considered in selecting best bank for investing.

Reputation and history of the bank

When choosing a bank to invest in Nepal's stock market, reputation and history are important considerations. Selecting a bank that has a proven track record of trustworthiness, security, and stability is essential. Investors should investigate the bank's history, effectiveness, management team, regulatory compliance, and financial results. Investors can feel confident and secure in their investments if the bank has a lengthy history in the Nepalese market and a strong track record. Therefore, it is essential to consider a bank's reputation and history before making any investment decisions.

Services and technology

An effective service platform that is easy to use and navigate should be offered by a good bank to enable investors to conveniently monitor and manage their money. Use of the latest technology in services affects the status of banks. In order to assist clients to execute any services effectively, the bank should take the assistance of technology. Investors should analyze and research the use of technology and services by bank before choosing the best bank for investing in Nepal Share Market.

Accessibility and convenience

A smart bank should offer easy-to-use options that allow customers to manage their investments wherever they are, such mobile or internet banking. This part also affects the client’s retention and increasing.

Major Factors to Consider to Choose the Best Bank in Share Market Nepal

Obviously, it is not easy to choose best bank to invest in share market Nepal. However, there are some important indicators or factors which can help in choosing best bank for investments.

Here are some Major Factors which are essentials to consider while choosing the best bank for share market in Nepal 2023.

1)            Paid Up Capital

2)            Earnings Per Share (EPS)

3)            Price to Earning (PE) Ratio

4)            Book Value

5)            Price to Book Value (PB) Ratio

6)            Return on Equity (RoE)

Banks in Nepal

There are two types of banks in Nepal which are known as Commercial Banks and Development Banks. Nepal Rastra Bank is the regularoty body of all types of banks in Nepal.

Nepal Rastra Bank has classified the bank as A, B, C. Commercial banks are A class bank whereas the Development Banks B class banks.

All the commercial banks and development banks are listed in Nepal Stock Market and their shares are traded regularly in Nepal Stock Market.

Commercial Banks in Nepal for Share Market Investments in 2023 and Their Paid-Up Value

1              GBIME  Global IME Bank Limited                  357,710,600.00

2              NIMB    Nepal Investment Mega Bank Limited        341,285,950.00

3              NABIL    Nabil Bank Limited            270,569,984.00

4              KBL         Kumari Bank Limited        262,258,614.00

5              PRVU    Prabhu Bank Limited          235,424,899.00

6              HBL        Himalayan Bank Limited          216,566,158.00

7              PCBL      Prime Commercial Bank Limited       194,025,757.00

8              NMB      NMB Bank Limited        183,667,068.00

9              NBL        Nepal Bank Limited        146,940,224.00

10           CZBIL     Citizens Bank International Limited           142,009,741.00

11           SBL         Siddhartha Bank Limited         140,899,808.00

12           ADBL     Agricultural Development Bank Limited          134,516,741.00

13           SANIMA               Sanima Bank Limited      124,601,153.00

14           NICA      NIC Asia Bank Limited                   115,640,054.00

15           LBL         Laxmi Bank Limited                         115,513,448.00

16           EBL         Everest Bank Limited                      106,980,940.00

17           MBL       Machhapuchchhre Bank Limited        102,571,555.00

18           SBI          Nepal SBI Bank Limited          101,206,288.00

19           SRBL      Sunrise Bank Limited              101,188,928.00

20           SCB        Standard Chartered Bank Nepal Limited                  94,294,537.00

Development Banks in Nepal for Share Market Investments in 2023 and Their Paid-Up Value

S.N         Symbol Name of Stock                                                  Paid Up

1              MNBBL Muktinath Bikas Bank Limited                    64,209,004.00

2              GBBL     Garima Bikas Bank Limited                           51,876,871.00

3              JBBL       Jyoti Bikash Bank Limited                              43,957,860.00

4              SHINE    Shine Resunga Development Bank Limited          42,838,832.00

5              MLBL     Mahalaxmi Bikas Bank Limited                   40,108,833.00

6              LBBL       Lumbini Bikas Bank Limited                          33,828,213.00

7              SADBL   Shangrila Development Bank Limited      32,676,003.00

8              KSBBL    Kamana Sewa Bikas Bank Limited             31,425,773.00

9              EDBL      Excel Development Bank Limited              12,496,945.00

10           MDB      Miteri Development Bank Limited            10,150,015.00

11           SAPDBL Saptakoshi Development Bank Limited                  8,343,384.00

12           SINDU   Sindhu Bikas Bank Limited            5,574,560.00

13           CORBL   Corporate Development Bank Limited   5,250,000.00

14           GRDBL  Green Development Bank Limited           5,190,000.00

15           KRBL      Karnali Development Bank Limited          5,028,300.00

16           NABBC  Narayani Development Bank Limited      2,624,676.00 

Here in this article, we will cover and talk only about the best commercial banks for the investment in share market in Nepal. It is also targeted to discuss the med term investment which is at least for one and more years. 

Which Bank is Best for Share Market in Nepal Based on Paid Up Capital in 2023?

The information related to the factors are updated as of the 2nd quarter report of 2023.

Paid up capital is one of the major resources for any company to grow it’s business. The company with high paid up capital may have low risk of business losses because they have the fund for expansion of different business. Considering the Paid Up capital of each commercial bank, the following 5 highest paid up capital banks can be the best bank for share market in Nepal for investments.

1              GBIME  Global IME Bank Limited               357,710,600.00

2              NIMB    Nepal Investment Mega Bank Limited    341,285,950.00

3              NABIL    Nabil Bank Limited           270,569,984.00

4              KBL         Kumari Bank Limited       262,258,614.00

5              PRVU    Prabhu Bank Limited      235,424,899.00

Sometimes, the highest paid-up capital company may not be the best for investing because the other factors also matters for investment. Low paid up capital company can distribute the bonus as the dividend to increase the paid up capital. It helps to increase the number of shares to shareholders. Higher number of shares will gain higher benefit for long term investing.

Which bank is best for share market in Nepal based on EPS in 2023?

Considering the Earning Per Share (EPS) of each commercial bank, the following 5 highest EPS banks can be the best for share market in Nepal for investments.

Symbol                 EPSTTM

NICA                      46.67

SCB                        31.14

EBL                         30.8

NABIL                    22.95

MBL                       21.21

EPS is the major factor to be considered in choosing the best bank for investments in the share market Nepal. However, other factors along with EPS should consider in selecting best bank for investment.

Which bank is best for share market in Nepal based on PE Ratio in 2023?

Price to Earning (PE) Ratio is the other important indicator that should be considered when choosing the best bank stocks in share market in Nepal. In general, lower PE Ratio is taken as best. However, the other factors also matter in selecting best bank in Nepal. The following 5 lowest PE Ratio banks can be the best for share market in Nepal for investments.

The following 5 lower PE Ratio value banks can be the best for share market in Nepal for investments.

Symbol                 PE RatioTTM

SRBL                      8.7

MBL                       10.1

NMB                      10.3

PCBL                      10.3

LBL                         11

Lowest PE Ratio bank stocks sometimes may not be the best bank stock for investing in the share market in Nepal because the other factors are more important in selecting best bank stock.

Which bank is best for share market in Nepal based on Book Value in 2023?

One of the essential fundamental indicators in selecting best bank stock is Book Value. Definitely the high book value stocks can be taken as good to choose for investments.

Highest book value is taken as good stock in share market of Nepal. The following 5 highest book value banks can be the best for share market in Nepal for investments.

Symbol                 Book Value

NICA                      243.97

NBL                        238.02

EBL                         221.39

ADBL                     206.31

NABIL                    199.12

Investing in best banks considering only book value my not be the good strategy for investing in share market in Nepal. It is also important to check the other fundamental indicators with book value. 

Which bank is best for share market in Nepal based on Price to Book (PB) Value in 2023?

A financial ratio called Price to Book (PB) value is used to contrast the market value and book value of a company. By dividing the current market price per share by the book value per share, the PB value is determined.

Investors use PB value to determine if a firm is overpriced or undervalued in the market, making it a crucial indicator. Investor expectations for the company's future performance and growth potential are higher when the PB value is higher.

The PB value is simply one of many financial indicators used to assess a company's success; it should be used in conjunction with other indicators and assessed in light of the industry and business model of the organization. It is important to check the Price to Book value ratio.

Here are the 5 lowest price to book (PB) value banks stocks that can be the best for share market in Nepal for investments.

Symbol                 Price to Book Value

SRBL                      1.04

NBL                        1.07

NIMB                    1.11

LBL                         1.13

KBL                         1.15

Remember that the selection of best bank for investing in share market in Nepal by looking PB ratio may not be the good strategy. Other factors should also check with PB Ratio.

Which bank is best for share market in Nepal based on Return on Equity (RoE) in 2023?

Return on Equity (RoE) is a financial ratio that assesses a company's profitability in relation to the equity of its owners. It displays the amount of profit a business makes using the capital that its shareholders have invested. RoE is determined as a percentage by dividing net income by shareholders' equity.

RoE is significant because it shows how efficiently a business is turning the capital of its shareholders into profits. A greater RoE shows that the business is making more money per share of investor capital, which is generally viewed favorably. To obtain a complete view of a company's financial performance, RoE should be examined in conjunction with other financial ratios.

The following 5 highest RoE banks can be the best for share market in Nepal for investments.

Symbol                 ROETTM

NICA                      21%

SANIMA               18%

SCB                        16%

EBL                         15%

NMB                      15%

Return on equity (RoE) is much important fundamental indicator in selecting the best bank stock.

Which 3 Banks Are Best For Share Market in Nepal in 2023 Considering All Factors?

Considering the all fundamental indicators and all factors mentioned above and analyzing the banks, best 3 banks are presented as the best bank for share market in Nepal in 2023.

1.  NIC ASIA Bank

NIC ASIA bank is the best commercial bank in 2023 considering almost all factors and fundamental indicators. It has the highest EPS in this year.

As of the 2nd quarter report of 2023, NIC ASIA Bank has the following fundamental indicators.

Market Capitalization    79,791,637,024.85

Paid Up Capital                 11,564,005,365.92

52 Weeks High/Low       845/603.1

EPSTTM                                  46.67 (Book Close Adjusted)

EPSReported                     56.61

PERatioTTM                          14.79

PBRatio                                2.83

ROETTM                               21.15 %

Book Value                         NPR 243.97 (Book Close Adjusted)

2. Everest Bank Limited

Everest Bank (EBL) can be taken as the second best commercial bank in 2023 considering almost different factors and fundamental indicators. As of the 2nd quarter report of 2023, it has the third highest EPS.

Based on the 2nd quarter report of 2023, Everest Bank has the following fundamental indicators.

Market Capitalization    51,543,417,855.60

Paid Up Capital                 10,698,094,200.00

52 Weeks High/Low       550/413

EPSTTM                30.80 (Book Close Adjusted)

EPSReported     29.69

PERatioTTM          15.64

PBRatio                2.18

ROETTM                 14.71 %

Book Value         NPR 221.39 (Book Close Adjusted)

3.  Nabil Bank Limited

Nabil Bank can be taken as the other best bank to invest in share market Nepal in 2023. Nabil Bank was the top best bank stock in 2022 with highest EPS. As of the 2nd quarter report of 2023, it has the fourth highest EPS.

Based on the 2nd quarter report of 2023, Nabil Bank has the following fundamental indicators.

Market Capitalization    156,930,583,557.00

Paid Up Capital                 27,056,997,165.00

52 Weeks High/Low       971/580

EPSTTM                  22.95 (Book Close Adjusted)

PE RatioTTM         25.27

PB Ratio               2.91

ROETTM                 13.56 %

Book Value         NPR 199.12 (Book Close Adjusted)

4.  Standard Chartered Bank Limited

Standard Chartered Bank Limited (SCB) can be taken as the other best commercial bank in 2023 considering different factors and fundamental indicators. As of the 2nd quarter report of 2023, it has the second-highest EPS.

With the 2nd quarter report of 2023, Standard Chartered Bank has the following fundamental indicators.

Market Capitalization    46,770,090,928.35

Paid Up Capital                 9,429,453,816.20

52 Weeks High/Low       546/383.1

EPSTTM                  31.14 (Book Close Adjusted)

PE RatioTTM         15.93

PBRatio                   2.53

ROETTM                 16.30 %

Book Value         NPR 195.73 (Book Close Adjusted)

In summary, top 3 best commercial banks which has higher value of different fundamental factors are presented here.

Symbol                 Book Value         EPSTTM                ROETTM               PETTM                  PB

NICA                      243.97                   46.67                     21%                        14.9                        2.86

EBL                         221.39                   30.8                        15%                        15.8                        2.2

NABIL                    199.12                   22.95                     14%                        25.8                        2.97

These are the best banks considering different indicators. However, you can analyze in your own way and select the best bank stocks for investment.

Reasons why the selected bank is the best option

For investors in Nepal, selecting the finest bank for stock market investments is a key choice. It becomes evident that there are some specific reasons why certain banks are the best choice after studying the numerous criteria and researching the various banks that offer share market services.

The other major reason to select bank as the best option is it’s volatility and low risks. All of the commercial banks has nationwide business. Therefore, banks are low-risk stocks to invest in share market Nepal.

Likewise, commercial bank stocks are performing well in recent years. There were 26 commercial banks few years ago but now it decreased to 20 by merging each other.

In conclusion, choosing the appropriate bank for Nepal's stock market investments is essential for accomplishing investment objectives. When choosing a bank for share market investing in Nepal, investors should take into account the bank's reputation, its year-to-year growth consistency, dividend history etc.

FAQs on Which Bank Is Best in Share Market Nepal

People who have involved in the share market Nepal always have the following queries in selecting best stocks.

Why is NIC ASIA Bank the best bank in Nepal?

There are many determinants in selecting best bank in Nepal. In the year 2023, NIC Asia bank is in top in various determinants like EPS, Book Value, ROE, Year to Year growth etc.

Which is the best bank for share market in Nepal?

The banks that grow year to year, have higher EPS, higher book value and top in other determinants can be taken as the best bank for share market in Nepal.

Which is the best bank in Nepal 2023?

NIC Asia Bank Limited, Everest Bank Limited, Nabil Bank Limited, Standard Chartered Bank Limited are the best banks in 2023 according to the 2nd quarter report.

Which bank is best in Nepal to invest?

If we look at the different determinants, NIC Asia bank is the best bank to invest in the year 2023. It does not mean that NIC Asia Bank will always be the best bank in Nepal to invest. To be the best bank, bank should have maintained its year to year growth in various fundamental indicators.

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